Agricultural Tractor Market Size, Share, Opportunities, And Trends By Engine Power (Less Than 40 HP, 41 To 100 HP, More Than 100 HP), By Type (Utility Tractors, Row Crop Tractors, Orchard Type, Industrial Tractors, Other Tractors), By Vehicle Type (Gasoline And Diesel, Electric), By Mode Of Operation (Manual Tractor, Autonomous), And By Geography - Forecasts From 2025 To 2030

The agricultural tractor market is estimated to grow at a CAGR of 5.48%, to reach US$31,229.554 million in 2030 from US$20,386.565 million in 2025.

The market for agricultural tractors is growing due to the increase in precision farming and the growing demand for agricultural farm equipment including agricultural tractors. Also, the government’s rising support for farm mechanization, through subsidies, incentives, and assistance for purchasing agricultural equipment, is significantly boosting agricultural tractor production. Moreover, the continuous technological advancements in tractor manufacturing enhance the efficiency  of tractors, driving the growth of the agricultural tractor market by improving the performance and capabilities of these machines.

The global agricultural tractor market refers to the production and sales of agricultural tractors and related products like accessories, attachments and parts of agricultural tractors like engines. The market consists of various types of engines such as less than 40 HP engine, between 41 HP to 100 HP and more than 100 HP tractors for farms such as small and fragmented farms, mid-sized farms and large farms. It is sold for its application in farming, livestock farming, specialized farming such as orchards, horticulture, growers etc. The market consists of utility tractors, row crop tractors, orchards tractors and other types of tractors. The market is dominated by manual tractors particularly in regions of Asia-Pacific while autonomous tractors are significantly demanded in developed countries.

Some of the major players operating in the market are Mahindra & Mahindra Limited, Deere & Company, Tractors and Farm Equipment Limited, CNH Industrial N.V., and Kubota Corporation among others.

What are the Agricultural Tractor Market Drivers?

• Increasing farm mechanization is driving the market growth

There is a substantial rise in the demand for agricultural equipment, including agricultural tractors. The growing precision farming is giving a major boost to the use of agricultural technologies. The use of advanced technologies such as GPS, automated steering systems, sensors and many others are significantly benefiting agriculture, driving demand for agricultural tractors. For instance, in August 2023, Mahindra OJA launched 7 revolutionaries lightweight 4WD Tractors, within the price range of Rs.5,64,500- Rs. 7,35,000, offering advanced and easy agricultural tractors  to the market. Also, the government’s increasing support for creating awareness among farmers for using agricultural tractors is driving the growth of the market. This increasing demand is evident from the data released by the Tractor and Mechanization Association stating the total retail sales in India increased from 125,418 in October 2023 to 151,772 in October 2024.Thus, the increasing farm mechanization along with continued government support will be driving the market growth.

• Technological advancement is boosting the market

The growing technological advancement in the agricultural tractor market is offering a boost to market growth. The growing use of sensors, geomapping, remote sensing, automated steering, high-powered engines is offering efficiency in the usage of agricultural tractors. For example, Kubota Corporation’s Grand L60’s engine lineup is redesigned for clearer emission and for offering economy in fuel. The company employed direct rail injection to save fuel. It also combines Diesel Particulate Filter (DPF) Muffler and Exhaust Gas Re-circulation System (EGR) to reduce emissions. This highlights that technological development is a key area to be focused.

Segment analysis of the Agricultural Tractor Market:

• By engine power, “Less than 40 HP” tractor will be growing significantly

The agricultural tractor market based on engine power is segmented into less than 40 HP, 41 HP to 100 HPand More than 100 HP. During the forecast period, the “less than 40 HP” tractor will grow significantly.

The market for less than 40 HP tractors will be driven by its demand from small to medium-sized farms. Expanding small-scale gardeners, orchard growers, hobby growers, and livestock farmers will offer a boost to the market demand. The rising small landholding due to the growing population is the major factor boosting its market demand as less than 40 HP agricultural tractors are best suited for small and fragmented landholdings. Additionally, stringent government regulations aimed at reducing carbon emissions are providing a substantial boost to the market, encouraging the adoption of these environmentally friendly. Moreover, the major factor that drives this dominance is the growing prevalence of small and fragmented land holdings particularly in the Asia-Pacific region.

What key geographical trends are shaping the Agricultural Tractor Market?

• Asia-Pacific market will be the fastest-growing market

Based on Geography, the Asia-Pacific market is estimated to grow at the fastest-growing market during the forecast period. The market will be driven by growing agricultural driven growing economies such as India and other economies like China, Japan etc. where the demand for agricultural tractor is high. Also, the growing mechanization and government support will be driving the market. For example, India is one of the leading global economies where agriculture plays a major role in GDP contribution, and with the rapid population growth the food demand and consumption scale is witnessed a significant jump in the nation.

On the other hand, the North American and European market will hold a significant share in the market. The prevalence of large-scale farming along with rising technological advancement will be driving the region’s growth.  

Recent developments in the Agricultural Tractor Market:

• In September 2024, Mahindra Tractors, India’s leading tractor brand, showcased its first CBG powered Yuvo Tech+ tractor in New Delhi, India.  It is using compressed natural gas that will reduce the pollutants and carbon emissions, representing a significant technological advancement. It also ensures operational power and performance with the capability of handling farming and haulage tasks.
• In February 2024, John Deere launches 9RX and high horsepower model ranges between  400 to 830 HP, especially for today's higher demands in agricultural activities. With changing weather patterns, a shrinking labor pool, and rising costs of inputs, farmers increasingly require faster and more cost-effective alternatives for fieldwork. These new models are well enhanced for engine and hydraulic options, advanced technology packages, and modernized cabs for comfort and productivity improvement, promoting field preparation to planting to harvesting efficiencies at lower costs per acre.

Agricultural Tractor Market Scope:

Report Metric	Details
Agricultural Tractor Market Size in 2025	US$ 20,386.565 million
Agricultural Tractor Market Size in 2030	US$31,229.554 million
Growth Rate	CAGR of 5.48%
Study Period	2020 to 2030
Historical Data	2020 to 2023
Base Year	2024
Forecast Period	2025 – 2030
Forecast Unit (Value)	USD Million
Segmentation	Engine Power Type Vehicle Type Mode of Operation Geography
Geographical Segmentation	North America, South America, Europe, Middle East and Africa, Asia Pacific
List of Major Companies in the Agricultural Tractor Market	Mahindra & Mahindra Limited Deere & Company Tractors and Farm Equipment Limited CNH Industrial N.V. Kubota Corporation
Customization Scope	Free report customization with purchase

 

The Agricultural Tractor Market is analysed into the following segments:

• By Engine Power
  • Less than 40 HP
  • 41 HP to 100 HP
  • More than 100 HP
• By Type
  • Utility Tractors
  • Row Crop Tractors
  • Orchard Type
  • Other Tractors
• By Vehicle Type
  • Gasoline and Diesel
  • Electric
• By Mode of Operation
  • Manual Tractor
  • Autonomous
• By Geography
  • North America
    • USA
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others
  • Europe
    • United Kingdom
    • Germany
    • France
    • Spain
    • Others
  • Middle East and Africa
    • Saudi Arabia
    • UAE
    • Others
  • Asia Pacific
    • China
    • Japan
    • South Korea
    • Australia
    • India
    • Indonesia
    • Thailand
    • Others

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1. INTRODUCTION

1.1. Market Overview

1.2. Market Definition

1.3. Scope of the Study

1.4. Market Segmentation

1.5. Currency

1.6. Assumptions

1.7. Base and Forecast Years Timeline

1.8. Key Benefits to the Stakeholder

2. RESEARCH METHODOLOGY  

2.1. Research Design

2.2. Research Processes

3. EXECUTIVE SUMMARY

3.1. Key Findings

3.2. CXO Perspective

4. MARKET DYNAMICS

4.1. Market Drivers

4.2. Market Restraints

4.3. Porter’s Five Forces Analysis

4.3.1. Bargaining Power of Suppliers

4.3.2. Bargaining Power of Buyers

4.3.3. Threat of New Entrants

4.3.4. Threat of Substitutes

4.3.5. Competitive Rivalry in the Industry

4.4. Industry Value Chain Analysis

4.5. Analyst View 

5. AGRICULTURAL TRACTOR MARKET BY ENGINE POWER

5.1. Introduction

5.2. Less than 40 HP

5.3. 41 HP to 100 HP

5.4. More than 100 HP

6. AGRICULTURAL TRACTOR MARKET BY TYPE

6.1. Introduction

6.2. Utility Tractors

6.3. Row Crop Tractors

6.4. Orchard Type

6.5. Other Tractors

7. AGRICULTURAL TRACTOR MARKET BY VEHICLE TYPE

7.1. Introduction

7.2. Gasoline and Diesel

7.3. Electric

8. AGRICULTURAL TRACTOR MARKET BY MODE OF OPERATION

8.1. Introduction

8.2. Manual Tractor

8.3. Autonomous

9. AGRICULTURAL TRACTOR MARKET BY GEOGRAPHY

9.1. Introduction

9.2. North America

9.2.1. By Engine Power

9.2.2. By Type

9.2.3. By Vehicle Type

9.2.4. By Mode of Operation

9.2.5. By Country

9.2.5.1. USA

9.2.5.2. Canada

9.2.5.3. Mexico

9.3. South America

9.3.1. By Engine Power

9.3.2. By Type

9.3.3. By Vehicle Type

9.3.4. By Mode of Operation

9.3.5. By Country

9.3.5.1. Brazil

9.3.5.2. Argentina

9.3.5.3. Others

9.4. Europe

9.4.1. By Engine Power

9.4.2. By Type

9.4.3. By Vehicle Type

9.4.4. By Mode of Operation

9.4.5. By Country

9.4.5.1. United Kingdom

9.4.5.2. Germany

9.4.5.3. France

9.4.5.4. Spain

9.4.5.5. Others

9.5. Middle East and Africa

9.5.1. By Engine Power

9.5.2. By Type

9.5.3. By Vehicle Type

9.5.4. By Mode of Operation

9.5.5. By Country

9.5.5.1. Saudi Arabia

9.5.5.2. UAE

9.5.5.3. Others

9.6. Asia Pacific

9.6.1. By Engine Power

9.6.2. By Type

9.6.3. By Vehicle Type

9.6.4. By Mode of Operation

9.6.5. By Country

9.6.5.1. China

9.6.5.2. Japan

9.6.5.3. South Korea

9.6.5.4. Australia

9.6.5.5. India

9.6.5.6. Indonesia

9.6.5.7. Thailand

9.6.5.8. Others

10. COMPETITIVE ENVIRONMENT AND ANALYSIS

10.1. Major Players and Strategy Analysis

10.2. Market Share Analysis

10.3. Mergers, Acquisitions, Agreements, and Collaborations

10.4. Competitive Dashboard

11. COMPANY PROFILES

11.1. Mahindra & Mahindra Limited

11.2. Deere & Company

11.3. Tractors and Farm Equipment Limited

11.4. CNH Industrial N.V.

11.5. Kubota Corporation

11.6. AGCO Corporation

11.7. Force Motors

11.8. Standard Corporation India Limited

11.9. Sonalika Group

Mahindra & Mahindra Limited

Deere & Company

Tractors and Farm Equipment Limited

CNH Industrial N.V.

Kubota Corporation

AGCO Corporation

Force Motors

Standard Corporation India Limited

Sonalika Group